Jim Rogers, FED cuts will hurt Dollar, Yuan Up - Feb. 2008

Jim Rogers, chairman of Rogers Holdings, talks with Bloomberg's Carol Massar from Frankfurt about the impact of Federal Reserve monetary policy on the economy and financial markets, the correlation of the U.S. to global investment markets, and his recommendation of China's currency. Bloomberg's Erik Schatzker also speaks.
(Source: Bloomberg)

February 1, 2008 09:14 EST

00:00 Outlook for oil prices, investment strategy
01:02 Ben Bernanke "doesn't know what he's doing."
02:39 Fed policy created "chaos"; contrast to Japan
04:10 Impact of U.S. economy on global markets
04:56 Strategy: agriculture, currencies; financials
05:21 China "buying reserves" in commodities
06:34 Aluminum Corp., Alcoa stake in Rio Tinto
08:07 Microsoft's bid for Yahoo; "shorting the ETF"
10:06 Recommends renminbi, "safest" for long-term

Running time 10:38

Category:

News & Politics

Tags:

• Jim
• Rogers
• FED
• Federal
• Reserve
• Dollar
• Yuan
• Commodities
• Bills
• Notes
• Bonds
• Stock
• Market
• Economy

[HamiDjoukou]

Question: When the U.S. Federal Reserve Bank lowers interest rates, what is the U.S. dollar supposed to do, according to the conventional economic "wisdom"? That's right, fall. So why then did the dollar gain Tuesday, March 18, after the Fed cut rates by a hefty 0.75%

[jb2134]

The dollar doesn't follow the FED exactly, every day. But over time it correlates (i.e. after Bernanke starting cutting rates in august, look at gold, oil, and the dollar. Gold is up about $250 an ounce since aug!).

When Bernanke prints money, it would be like playing monopoly, and the banker adds more money to the board. Prices get bid up. And if you were saving money, the value of your money goes down.

[HamiDjoukou]

Well, it's not that easy, look at the US dollar index and the 3 month US treasury Bill yield (5 year correlation LT chart from 1975 until now)

conclusion: no correlation!

[jb2134]

Everytime I see a video or read an interview of Jim, his clarity is astonishing. He cuts through to the truth with a laser focus, he makes it look so simple.

All the guys on tv, the bloomberg anchors, they're all caught up in madness and the latest short term craze. It's amazing how successful you can be if you stay out of the noise and think rationally (and think for yourself).

[sianghan]

I watch business news for facts, not propaganda. If you want boot-licking US propaganda, switch to fox news. No, its not against the law to talk down a company when you're short. No, he's not based in China, he's based in Singapore. Where do you get this garbage from? And if you were to follow his advice over the past decade, your portfolio would be up 400%.

[Capnwabbit]

The dollar will actually go UP in the short term because people will be getting "out of position" and seeking hard cash. Think of it as the calm before the storm...

[bschinzel]

As the Euro and Yen hit all time highs vs the dollar...

These things take time to ripple through the system

Speculators are not buying up oil futures, silver, and gold for their health. They are hedging the inflation that these morons at the fed are creating

[Cloud87man]

The 70s are back! Get your pair of bell bottoms now before inflation hits 10%!

[imnos482]

The dollar goes lower as the money circulates. It will take weeks to months for that money to cause the dollar to fall. I would say with the amount of money the fed has put into the system this past week, we are looking at another 5% loss of the dollar by the end of may.

[sugarpuddin88]

I'm not understanding why the word "recession" has become so stylish

Bottom line is the USA has pledged 96 Trillion to SS and medicaid (which equals 1 million per every adult in the USA); owes 10 Trillion in interest to the private bankers who own the FED; and the US dollar is not worth the paper it is printed on

What's the point speaking of "recession" - The economic mushroom cloud has already made its appearance